At a time when the hi-tech industry in general is facing a bit of a downturn, Intel is about to make the largest ever foreign investment in Israel.

Prime Minister Benjamin Netanyahu on Sunday enthusiastically announced that Intel would build a new chip manufacturing plant in Israel to the tune of $25 billion.

“This is an expression of great confidence in the Israeli economy and reflects the strength of the free economy that we have built here, and the technological economy that we are developing here,” said Netanyahu.

Intel already operates a large research and development center and manufacturing plant in the southern Israel city of Kiryat Gat. A second plant is already under construction. The newly-announced plant will be Intel’s third in Israel when it goes operational in 2027.

Intel presently employs 10,000 people in Israel directly, and another 30,000 indirectly.

The global hi-tech powerhouse said Israel is key to its success. “Our intention to expand manufacturing capacity in Israel is driven by our commitment to meeting future manufacturing needs … and we appreciate the continued support of the Israeli government,” read a statement released by Intel.

In 2022, Intel Israel, which is responsible for developing some of the company’s latest and most advanced computer chips, recorded exports of $8.7 billion, accounting for 1.75% of Israel’s GDP and 5.5% of over hi-tech exports.